Perelman won the jury verdict in a trial court after alleging Morgan Stanley helped Sunbeam Corp. inflate the value of its stock prior to a merger with Coleman Co., then owned by Perelman. The 4th District Court of Appeal in West Palm Beach, though, reversed it in March on a 2-1 vote, ruling that Perelman had failed to prove his case for damages.

The Supreme Court issued a brief 5-0 order saying simply that it declined to accept jurisdiction and would not consider a motion for rehearing.

"The court has made it's decision and we will abide by it," said Perelman's spokeswoman, Chris Taylor. She declined to make further comment.

Perelman, the chairman of cosmetics giant Revlon Inc., accused Morgan Stanley of conspiring with Sunbeam, a client of the investment bank, to lure him into the merger by making false statements about the company's financial health.

As a result, Perelman claimed he sold Coleman, a camping supply maker, to Sunbeam in 1998 some months before restated earnings and ahead of Sunbeam's 2001 bankruptcy. Perelman claimed he lost $680 million on 14.1 million shares of Sunbeam stock he received in the deal.

"It's a total victory for Morgan Stanley," said Bruce Rogow, a lawyer for the investment bank. "They have no exposure to any damages."

Morgan Stanley now will return to the trial court with a claim against Perelman for close to $10 million in costs including expenses for litigation and posting an appellate bond, Rogow said.

The decision also allows Morgan Stanley to free up $360 million it had set aside in case it had to settle the litigation.

In papers filed with the Supreme Court, Rogow had argued there was no basis for taking the case because the appellate ruling didn't conflict with any other court decisions and no questions of great public importance had been certified by the district judges.

"I thought their petition was a Hail Mary pass, but I did not think it was going to be caught," Rogow said.

The original verdict in 2005 had been seen as a major setback for Morgan Stanley's management, especially then Chief Executive Philip Purcell. It contributed, along with lackluster earnings and dropping stock prices, to a shareholder revolt that forced Purcell out in 2005. He was replaced by John Mack.

"We believe this brings Coleman's claims against Morgan Stanley to an end, and we are happy to put this matter behind the firm," said Morgan Stanley spokesman Mark Lake.